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Karachi: May 15, 2026: Pakistan has successfully entered the Chinese capital market with its first Panda Bond issuance. The country raised RMB 1.75 billion through a 3-year bond in the Chinese interbank market this week. This marks Pakistan’s debut in China’s debt capital market and expands its international financing options. Standard Chartered, through its China subsidiary, acted as the only foreign bank serving as joint lead underwriter and joint bookrunner and helped structure and place the transaction.
Multilateral support strengthened the deal. Asian Infrastructure Investment Bank and Asian Development Bank provided partial guarantees covering 95% of principal and interest. As a result, investor confidence increased and participation widened. Chinese banks, securities firms, and international banks placed strong orders. Demand reached about five times the issue size, which allowed Pakistan to price the bond at 2.50%, at the tighter end of the guidance range.
Rehan Shaikh, CEO & Head of Coverage at Standard Chartered Pakistan, said the issuance reflects a major milestone for Pakistan in the China Debt Capital Market. He noted that the transaction builds on the bank’s long-standing relationship with Ministry of Finance Pakistan and supports Pakistan’s efforts to diversify funding sources. He also highlighted that multilateral guarantees helped improve market confidence and strengthened the success of the debut.
Jerry Zhang, Global Head of Banks & Broker Dealers and Head of Coverage for Greater China and North Asia at Standard Chartered, said the deal shows the bank’s role as a “super connector” between international issuers and Chinese capital markets. He added that the transaction reflects growing cooperation among global financial institutions and supports the renminbi’s gradual shift from a trade settlement currency to a broader financing currency in global markets.
